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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (6849)	10/1/1998 12:40:00 PM
From: Sam	Read Replies (1) \| Respond to of 9980

Zeev, " On the other hand, if the current bear market in equities brings us down to the low 6000 on the Dow in the next six month and bonds are below 5%, a case for funds stating to move back into equities could be made, thus keeping the bond rates from going to low, IMHO." I think it was in Barrons the week before last that someone wrote that at the then current interest rates, the market was slightly undervalued according the model that the Fed [allegedly] uses to determine under- and over-valuation of equities. If so, then it must be much more undervalued at these levels (we're under 4.9% now), and a case could already be made for moving back into equities, especially given the increasing likelihood of further Fed easing, as they continue to follow the bond market's direction down.